FedEx Drivers Are Employees Not Contractors, Court Rules
The U.S. Ninth Circuit Court of Appeals on Wednesday ruled two classes of individuals working for FedEx Ground in California and Oregon were misclassified as independent contractors instead of employees.
by Staff
August 27, 2014
2 min to read
The U.S. Ninth Circuit Court of Appeals on Wednesday ruled two classes of individuals working for FedEx Ground in California and Oregon were misclassified as independent contractors instead of employees.
The decision by a three-judge panel in Portland reversed an earlier decision. It allows the groups to move forward with their litigation and pursue claims under federal and state laws.
Ad Loading...
The ruling stems from lawsuits originally filed in California involving about 2,300 full-time delivery drivers between 2000 and 2007, and two suits filed in Oregon involving more than 360 people who were full-time delivery drivers between 1999 and 2009.
FedEx may owe its workforce of drivers millions of dollars for shifting to these drivers the costs of such things as the FedEx branded trucks, FedEx branded uniforms, and FedEx scanners, as well as missed meal and rest period pay, overtime compensation, and penalties.
FedEx said it would appeal the decision.
"We fundamentally disagree with these rulings, which run counter to more than 100 state and federal findings, including the U.S. Court of Appeals for the D.C. Circuit, upholding our contractual relationships with thousands of independent businesses," FedEx Ground Senior Vice President and General Counsel Cary Blancett said in a statement.
The court’s finding in this latest ruling that drivers in California are covered by California’s workplace protection statutes not only impacts one of FedEx Ground’s largest workforces, but also could influence the outcome in over two dozen cases nationwide in which FedEx Ground drivers are challenging the legality of their independent contractor classification, according a release from the law firm Leonard Carder, which represented the California plaintiffs.
Ad Loading...
“FedEx Ground built its business on the backs of individuals it labeled as independent contractors, promising them the entrepreneurial American dream,” said Leonard Carder Attorney Beth A. Ross.
According to the law firm, FedEx now requires its independent contractors in California to hire a secondary workforce of FedEx drivers, who do the same work as the plaintiffs under the same contract. The decision calls into question FedEx’s strategy of making plaintiffs the middle men between the secondary workforce of drivers and FedEx.
“We have heard of many instances where the secondary drivers are earning such low wages that they have to rely on public assistance to make ends meet,” said Ross.
AI is no longer a future concept for fleets—it’s already embedded in the tools, data, and decisions that operators rely on every day. In this episode of the Fleet Forward Podcast, recorded live at Fleet Forward, industry leaders take the conversation beyond hype to examine what responsible AI adoption really looks like in fleet operations.
As fleets rethink how they capture, manage, and act on vehicle data, telematics is at a major inflection point. In this episode of the Fleet Forward Podcast, we dive deep into one of the most pressing questions facing fleet leaders today: Should you rely on OEM factory-installed connectivity, aftermarket devices, or a hybrid of both?
Experts from telematics analytics, fleet-as-a-service operations, and national EV benchmarking share how real-time data is reshaping fleet strategy—dispelling assumptions, validating best practices, and exposing costly missteps.
A powerhouse panel featuring experts from the American Automotive Leasing Association, CalSTART, and municipal fleet leadership dives into the realities of navigating shifting emissions rules, regulatory waivers, federal agency actions, the future of the EPA’s endangerment finding, and the push for unified standards. They also examine the impacts of tariffs, autonomous vehicle policy, battery innovation, and the accelerating global EV market.
This episode kicks off with a deep dive into the technologies and market forces reshaping today’s fleet landscape. Host Chris Brown is joined by Laolu Adeola (Leke Services), Tyson Jomini (J.D. Power), and Richard Hall (ZappiRide) to break down real-world data, shifting incentives, and practical strategies fleet leaders can use right now.
In the middle of natural disasters fleet managers must shift priorities to protect people and assets. What policy items should be loosened, and when should the line be held?
In this episode, fleet leaders from municipal, university, and private-sector organizations share a candid EV reality check. From infrastructure setbacks and policy whiplash to grant funding, total cost of ownership, and charging resiliency, this conversation dives into what it actually takes to scale electrification in the real world.
After a decade of lagging compensation, fleet manager pay is climbing. But expanding responsibilities, larger fleets, and growing complexity continue to redefine the role.